Australia's Qantas announced that domestic fuel surcharges are to be cut and that some of its international surcharges will be further reduced after January 23.

"We reduced international surcharges in October and we have been monitoring oil prices closely since then," said Qantas general manager John Borghetti.

"With the more recent fall in the price of jet fuel, we can now extend the surcharge reduction, as well as make further reductions on a number of our international routes," he said.

Mr Borghetti said Qantas would continue to monitor oil prices and refining costs, which remained a major issue for Qantas and the wider aviation industry.

"Despite hedging and surcharges, we are still under-recovering the cost of fuel price increases by hundreds of millions of dollars, even with the recent drop in jet fuel prices," he added.

On international services [one way] there will be no changes to the fuel surcharge for flights from Australia to UK and Europe remaining at A$170 (US$133) and for flights from Australia to US, Canada, South America, South Africa and India at A$133.

The fuel surcharge for flights from Australia to Asia, Pacific and Honolulu will be cut by A$5 to A$100, and the surcharge to New Zealand will come down from A$60 to A$55.

On domestic services, the surcharges on flights operated by Qantas Australian and New Zealand domestic as well as jet services provided by QantasLink will be reduced from A$31 to A$26 (including GST). There will also be an A$5 reduction to A$24 on turboprop services operated by QantasLink.